HOMEWORK SET 1 b Probs. 1-5, 1-12 b Question 2-8 b Probs. 2-1,
2-14 b Case Prob. 2.4 b Probs. 3-2, 3-14 b Probs. 4-8, 4-14 b
Probs. 5-4 and 5-5
Slide 3
Problem 1.4not assigned Productivity could be measured by total
account dollars per hour worked, new account dollars per hour
worked or existing account dollars per hour worked. Bates is the
most productive based on total output. Albert and Duong have the
most new accounts, and thus the greater potential returns in the
future. However, Duong cannot work many more hours a week and Bates
is only working half time. Bates has the potential to sell more if
he works more hours.
Slide 4
Problem 1.5 Labor HoursUnits of OutputProductivity
U.S.89.51361.52 Germany83.61001.20 Japan72.71021.40 The U.S. is the
most productive.
Slide 5
Problem 1-6not assigned Homework Problem 1-6 Units (in
000's)CinncinnatiFrankfurtGuadalajaraBejiing Finished
goods10,00012,0005,0008,000 Work-in-process1,000220030006000 Costs
(in 000's) Labor costs$3,500$4,200$2,500$800 Material
costs$3,500$3,000$2,000$2,500 Energy costs$1,000$1,500$1,200$800
Transportation costs$250$2,500$2,000$5,000 Overhead
costs$1,200$3,000$2,500$500 a.Labor productivity3.143.383.2017.50
b.Total (multifactor) productivity1.161.000.781.46 c.Omar should
probably close the plant in Guadalajara because its multifactor
productivity is the lowest, its labor productivity is the second
lowest, and its output is the least of the four plants.
Slide 6
Problem 1.7not assigned
Slide 7
Problem 1-8not assigned b b Productivity decreases from week to
week. b b Average is 93 sq. yds/hr Installation123 Square
Yards1,2251,4352,500 # workers435 # hours356 Square
yds/hr102.0895.6783.33
Slide 8
Problem 1.9not assigned a. Work center # 3 is the most
productive. b. With a 10% raise in center 1, productivity goes down
to 14.18 pieces per dollar spent. c. With new equipment in center
3, productivity goes up to 48 pieces. Install the new
equipment.
Slide 9
Problem 1-10not assigned b b Material productivity is stable
over the 4 weeks. Labor productivity increases in week 2 and
decreases in weeks 3 and 4. Week1234 Units of
output2,0004,0005,0007,000 # workers4456 Hours per week40485670
Labor cost per hour$10 Material (lbs.)2865707201,000 Material cost
per lb.$4 Labor productivity1.252.081.791.67 Material
productivity1.75 1.741.75 Multifactor
productivity0.730.950.880.85
Slide 10
Problem 1.11not assigned John is the most productive.
Slide 11
Problem 1.12 Alaskan SealBrr FrostCold CaseDeep Freeze Purchase
cost $3,270$4,000$4,452$5,450 Daily energy consumption (kwh)
3.613.886.6829.07 Cost per kwh $0.10 Daily energy cost
$0.36$0.39$0.67$2.91 Daily purchase cost $2.99$3.65$4.07$4.98 Total
cost $3.35$4.04$4.73$7.88 Volume (cu ft) 25354979 Productivity (cu
ft/$) 7.478.6610.3510.02 Cost/cu ft $0.13$0.12$0.10 Choose Cold
Case.
Slide 12
Problem 2.1a
Slide 13
Problem 2.1b
Slide 14
Problem 2.1c These index values do not provide much information
regarding the effectiveness of the quality assurance program. They
are, however, useful in making comparisons from one period to the
next and in showing trends in product quality over time.
Slide 15
Problem 2-4not assigned
Slide 16
Problem 2-6not assigned (a) Stage% Good Quality 10.87 20.91
30.94 40.93 5 60.96 Production =300 Yield =185 (b) Production
=486Goal seek used to find this answer. Input =300
Slide 17
Problem 2-10not assigned a. b.
Slide 18
Problem 2.11not assigned
Slide 19
Problem 2.14 With an 8% defect rate: Sales151200 Variable
costs61200 Fixed costs31000 Profit59000 With zero defects:
Sales151200 Variable costs56305 Fixed costs31000 Profit63895 % decr
in var costs7.998366 % inc in profits8.29661 Return on inv
=19.58%
Problem 3.6not assigned b C = 86/20 = 4.3 b UCL = 4.3 + 34.3 =
10.52 b LCL = 4.3 - 34.3 = --1.92 ==> 0 b The pattern is in
control. The run-up from sample point 9 to 15 is not random and
should be examined for causeIt is not reason to stop the process at
this point. b SPREADSHEET SPREADSHEET
Slide 26
Problem 3-6not assigned
Slide 27
Problem 3.7not assigned The process does not appear to be out
of control, but sample 21 is close to the UCL and the process
should be investigated.
Can we use the data in 3-10 to calibrate the process? b i.e. as
the operating control chart? b NO, WE CANNOTWE MUST FIRST GET THE
PROCESS TO A POINT WHERE IT IS STABLE AND IN CONTROL, THEN COLLECT
DATA FROM THAT AND USE THAT DATA TO CREATE OUR CONTROL CHART!
Prob 3-31xbar & rbar chartsNOT ASSIGNED b Xbar-bar = 3.17,
Rbar = 3.25, A2=.58 b UCL = Xbar-bar + A2*rbar = 5.04 b
LCL=Xbar-bar A2*rbar=1.29 b Chart shows process to be out of
control at point 10. Stop process at sample 10
Slide 36
Problem 3-31not assigned
Slide 37
Slide 38
b UCL = D4*Rbar = 2.11*3.25 = 6.86 b LCL = D3*Rbar = 0.00*3.25
= 0 b SPREADSHEET SPREADSHEET
Slide 39
Problem 3-40NOT ASSIGNED Process Capability Ratio: Upper limit
=12.00 Lower limit =6.00 Standard deviation =1.64 Cp =0.61 Process
Capability Index: Process mean =9.42 Design target =9.00 Tolerance
range =3.00 Standard deviation =1.64 Cpk =0.52
Slide 40
Problem 3-40not assigned b The process capability ratio is less
than 1 so the process is NOT capable b The process capability index
is less than 1 indicating again that the process is NOT
capable
Slide 41
Problem 3-44not assigned
Slide 42
Slide 43
Since which is less than 1.0, the process range is greater than
the tolerance range and the process is not capable of producing
within the design specifications all the time. Since is less than
1.0, the process has moved closer to the lower design specification
and will generate defects.
Slide 44
Problem 3-46not assigned
Slide 45
Problem 4-6not assigned a. b.
Slide 46
Problem 4.8
Slide 47
Problem 4.9not assigned
Slide 48
Problem 4-12not assigned MTBFMTTRSystem Provider(hours)
Availability Able Copy4010.9756 Business Mate8040.9524 Copy
Whiz24080.9677
Slide 49
Problem 4.13not assigned Choose Airway
Slide 50
Problem 4-14 b Provider MTBF MTTR SA b JCN (8*40)/50=6.4 3+2=5
6.4/(6.4+5)=.56 b Bell (8*40)/100=3.2 2+1=3 3.2/(3.2+3)=.52 b Com
(8*40)/250=1.3 1+.5=1.5 1.3/(1.3+1.5)=.46 b Best choice in terms of
SA is JCN
Slide 51
Problem 5-4 Arrival rate =7.5parts per hour Service rate
=10parts per hour Average number in the system (L) =3.0parts
Average number in the queue (Lq) =2.25parts Average time in the
system (W) =24minutes Average time in the queue (Wq) =18minutes
Utilization factor (U) =0.75 P(0) =0.25
Slide 52
Problem 5-5 U =Arrival rate/service rate U =Arrival rate/10.90
=Arrival rate/10 Arrival rate =(10)*(.9) =9 per hour Arrival rate
=60/9or one part every 6.67 minutes
Slide 53
Problem 5-6not assigned
Slide 54
Problem 5-8not assigned b Spreadsheet Spreadsheet
Slide 55
Problem 5-9not assigned
Slide 56
Problem 5-10not assigned Homework Problem 5-10 Arrival rate
=120trucks per hour Service rate =140trucks per hour P(0) =0.143
P(1) =0.122 P(2) =0.105 P(3) =0.090 P( < 4)0.460 P( >= 5) = 1
- P( < 4) =0.540 This solution assumes that arriving trucks will
pass by the station if they see 4 trucks waiting in line. Since
four trucks are waiting, one truck is being served, for a total of
5 trucks in the system.
Slide 57
Problem 5-12not assigned
Slide 58
Problem 5-14 Not assigned
Slide 59
Problem 5.23not assigned
Slide 60
Problem 5.38not assigned
Slide 61
Stitching Problem b Stitches and glue are redundanti.e., in
parallelnot in series b Ask yourselfwill the shoe system function
the first day with only glue and not stitches, or vice versa? b
System reliability of one row of stitches and glue =.5 +.7 -.5*.7
=.85
Slide 62
Stitching Problem b Add a second row of stitches b Reliability
=.85 +.5 -.85*.5 =.925 b Add a third row of stitches b Reliability
=.925 +.5 -.925*.5 =.9625
Slide 63
Review for Exam 1 This exam will be administered Tuesday July
16, 2013 in this roomyou will have the entire period
Slide 64
Exam Structure b 50 multiple choice worth 50% b 4-5 problems
worth 50% b Bring: pencils, erasure, 5-function calculator, orange
scantron sheet b Exam is closed-notes, closed-books,
closed-neighbors
Slide 65
Chapters covered b 1, 2, 3, 4, 5, 6 b No supplements to any of
these chapters
Slide 66
Problems b Calculate product yield b Calculate product cost
based on product yield b Calculate reliability Like problem 4-8 in
your HWLike problem 4-8 in your HW b Calculate break-even volume
and indifference points b RE-ENGINEER A PROCESS
Slide 67
More problems b P-chart//R-chart//xbar chart Like problems 3-2
and 3-14 in your HWLike problems 3-2 and 3-14 in your HW b Cpr/Cpk
problemstandard deviation given to you. b QFD (Quality Function
Deployment) Problem is not likely, but there will be Multiple
Choice on it
Slide 68
Chapter 1 b Name some activities of operations managers
Organizing work, selecting and innovating processes, arranging
layouts, locating facilities, designing jobs, measuring
performance, controlling quality, scheduling work, managing
inventory, planning productionOrganizing work, selecting and
innovating processes, arranging layouts, locating facilities,
designing jobs, measuring performance, controlling quality,
scheduling work, managing inventory, planning production b Is the
Japanese success in Manufacturing a cultural one? No. Witness what
Matsushita did with Motorolas QuasarNo. Witness what Matsushita did
with Motorolas Quasar
Slide 69
Activities in Operations Management include all but. b
Organizing work b Controlling quality b Selecting processes b
Controlling finances b Scheduling work
Slide 70
Operations at a Bank b Processing funds b Providing checks b
Cashing checks b Preparing monthly statements b Reconciling
statements b Approving loans b Loaning money b Tracking loan
payments
Slide 71
Operations at a retail store b Purchasing goods b Stocking
goods b Selling goods b Tracking inventory b Scheduling workers b
Laying out the store b Locating the store b Forecasting demand
Slide 72
Operations at hospital b Preparing rooms b Scheduling doctors,
nurses, operating rooms b Processing paperwork b Ordering supplies
b Billing customers b Caring for patients b Maintaining the
facility
Slide 73
Operations at a cable TV company b Taking orders b Installing
equipment b Maintaining equipment b Staying on the air b Scheduling
work b Processing statements b Processing payments
Slide 74
Evolution of Operations b Industrial revolutionAdam Smith b
Scientific managementFrederick Taylor b Human relationsAbraham
Maslow b Operations researchGeorge Dantzig b Quality revolutionW.
Edwards Deming b Globalizationmany contributors b InternetTim
Berners Lee
Slide 75
Productivity is what exactly? b Output/Input Measured in
$$$Measured in $$$ b The most common measure of competitiveness of
a country b Government reports measure CHANGES IN PRODUCTIVITY from
month to month
Slide 76
Name some trends in OM b Intense Competition b Global markets b
Importance of Strategy b Product variety and mass customization b
More services b Emphasis on quality b Flexibility b Advances in
technology b Worker involvement
Slide 77
Name some barriers to entry of new enterprises b Economies of
Scale b Access to customers and suppliers b The capital investment
required b Learning curves b {Which of these would cause the cost
to manufacture an airliner to decline from $300M to $30M as the
manufacturer proceeds from the 1 st to the 10 th airplane??}
Slide 78
More Chapter 1 b Would you say that cheap labor rates are the
strongest motivation for plant location? b Whose hourly wage rates
are substantially higher than ours? b Operations has been likened
to a _____ process b The purpose is to add _____, more ____ than
you add cost.
Slide 79
Chapter 1 b _____ is the most common measure of competitiveness
of a country. b a) Operations b b) Process b c) Productivity b d)
E-commerce b e) Positioning
Slide 80
How important is a countrys competitiveness? b Somewhat b Not
very b Not at all b Very important, if you value standard of
living
Slide 81
Operations Strategy b Primary tasks, core competencies, order
qualifiers--define these b Name four dimensions of competition b
Today the focus in not on functions but _____ b Name four PROCESS
(OPERATIONS) types project, batch, mass production, continuous
production b Which of these are low-volume, which are high
volume
Slide 82
Operations Strategy b What is meant by a core competence b What
is meant by make to ordermake to order make to stockmake to stock
assemble to orderassemble to order
Slide 83
Service Operations b There are four types Professional service,
service shop, mass service, service factoryProfessional service,
service shop, mass service, service factory Schema coordinates are
labor intensity and customizationSchema coordinates are labor
intensity and customization
Slide 84
Ch 2 - 3 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Competing On Cost b Eliminate all waste b Invest in updated
facilities & equipmentupdated facilities & equipment
streamlining operationsstreamlining operations training &
developmenttraining & development b Examples WalmartWalmart
Southwest AirlinesSouthwest Airlines
Slide 85
Ch 2 - 4 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Competing On Quality Please the customer Understand customer
attitudes toward and expectations of qualityUnderstand customer
attitudes toward and expectations of quality ExampleExample
Ritz-Carlton Hotels
Slide 86
Ch 2 - 5 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Competing On Flexibility b Produce wide variety of products b
Introduce new products quickly b Modify existing products quickly b
Respond to customer needs b Example Anderson WindowsAnderson
Windows Custom Foot Shoe StoreCustom Foot Shoe Store National
Bicycle Industrial companyNational Bicycle Industrial company
Slide 87
Ch 2 - 6 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Competing On Speed b Fast moves b Fast adaptations b Tight linkages
b Example: Dell b Another example: Walmarts cross-docking
Slide 88
Ch 2 - 17 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Product-Process Matrix Volume Low High Projects Batch production
Mass production Continuous production Standardization
Slide 89
Service-Process Matrix Labor Intensity High HighLowLow
Professional Service Service Shop Mass Service Service Factory
Customization Figure 2.4
Slide 90
Chapter 2--Quality Management b Be able to calculate Yield and
Product cost Formulas will be given to youFormulas will be given to
you What we learn from problems 2-1 and 2-14? That improvements in
quality (Yield) produce reductions in cost
Slide 91
Chapter 2-Quality Gurus b Who gave us P-D-C-A? b What was the
name of his mentor? b Who Wrote the book QUALITY IS FREE? b Who
proposed that TQM was a total commitment among both management and
employees
Slide 92
Name the first five of Demings 14 points b Maintain constancy
of purpose b Adopt a philosophy of prevention b Eliminate the need
for inspection b Select a few suppliers b Constantly improve the
production process
Slide 93
TQM b Relation to continuous process improvement b Who defines
quality?? b Who provides the leadership for quality? b Is quality a
strategic issue? b To what extent is quality a worker vs. a
managerial issue?
Slide 94
Measures of Quality b FOR PRODUCTS b Performance b Features b
Reliability b Conformance b Durability b Serviceability b
Aesthetics b Safety b Other b FOR SERVICES b Timeliness b
Completeness b Courtesy b Consistency b Accuracy b Convenience b
Responsiveness
Slide 95
Ch 3 - 9 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
The Meaning of Quality Quality of ConformanceQuality of Design
Producers PerspectiveConsumers Perspective Fitness for Consumer Use
ProductionMarketing Conformance to specifications Cost Quality
characteristics Price
Slide 96
Ch 3 - 16 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Strategic Implications Of TQM b Quality is key to effective
strategy b Clear strategic goal, vision, mission b High quality
goals b Operational plans & policies b Feedback mechanism b
Strong leadership
Slide 97
DMAIC what does it stand for? b Define b Measure b Analyze b
Improve b Control
Slide 98
Ch 3 - 18 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Cost Of Quality b Cost of achieving good quality
PreventionPrevention AppraisalAppraisal b Cost of poor quality
Internal failure costsInternal failure costs External failure
costsExternal failure costs
Slide 99
Companies underestimate their failure costs b Because these are
harder to measure b Crosby says these amount to 20-30% of annual
revenues, whereas the costs of good quality are roughly 3-4% of
annual revenues
Chapter 3--Statistical Process Control b Be able to construct
p-charts, c-charts For attributesFor attributes b Be able to
construct xbar charts, R-charts For variablesFor variables
Slide 102
Ch 4 - 4 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Variation b Common Causes Variation inherent in a processVariation
inherent in a process Can be eliminated only through improvements
in the systemCan be eliminated only through improvements in the
system b Special Causes it is visible on a control chart Variation
due to identifiable factorsVariation due to identifiable factors
Can be modified through operator or management actionCan be
modified through operator or management action
Slide 103
Ch 4 - 5 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Types Of Data b Attribute data Product characteristic evaluated
with a discrete choice Good/bad, yes/no b Variable data Product
characteristic that can be measured Length, size, weight, height,
time, velocity
Slide 104
Ch 4 - 8 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Control Charts b Graph establishing process control limits b Charts
for attributes p charts and c chartsp charts and c charts b Charts
for variables Mean (X-bar), Range (R-bar)Mean (X-bar), Range
(R-bar)
Slide 105
The x-bar chart is based on which probability distribution? b
Exponential distribution b Binomial distribution b Normal
distribution b Beta distribution b Poisson distribution
Slide 106
Typically control limits of control charts represent ____ sigma
limits b2b2b2b2 b3b3b3b3 b4b4b4b4 b5b5b5b5 b6b6b6b6
Slide 107
Six sigma means what in terms of defects b 35,000 defects PMO b
3.4 defects PMO
Slide 108
Chapter 4Product Design b Design for manufacture b Design for
assembly b Design for environment b Design for maintenance b Design
for Robustness
Slide 109
Ch 5 - 15 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Computing Reliability 0.90.95.90 0.90 x 0.90 = 0.81 0.95 +
0.90(1-0.95) = 0.995 Components in series Components in
parallel
Slide 110
A technique for improving the design of a product vis--vis b
Customer requirements b Comparing competitions products, is
called______ b Taking apart the competitions products, is
called______
Slide 111
Ch 5 - 37 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
House Of Quality 6. Technical assessment and target values 1.
Customer requirements 4. Relationship matrix 3. Product
characteristics Importance 2. Competitive assessment 5. Tradeoff
matrix
Slide 112
Measures of Design Quality include b Number of component parts
and product options b % of standard parts b Use of existing
manufacturing processes b Cost of first production run b Cost of
engineering changes during the first six months b Total product
cost b Total product sales b Sustainable development
Ch 5 - 25 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
DFM Guidelines 1. Minimize the number of parts 2. Develop a modular
design 3. Design parts for multi-use 4. Avoid separate fasteners 5.
Eliminate adjustments 6. Design for top-down assembly
Slide 115
Chapter 6Processes, Technologies & Capacity b Michael
Hammereliminate _______?? b Make work _____ again b Make processes
_______
Slide 116
Ch 6 - 20 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Process Flowchart Symbols Operations Inspection Transportation
Delay Storage D
Slide 117
b 1.__________________ takes a long time to complete, involves
a large investment of funds and resources, and produces one item at
a time to customer order. b A. A project b B. Batch production b C.
Mass production b D. A continuous process 2.Very high volume
commodity products are best suited to: b A. projects. b B. batch
production. b C. mass production. b D. continuous production.
Slide 118
b 3.A process flow chart: b A. includes only productive
activities. b B. shows the parent-component relationship in a
product. b C. is derived from a floor plan of the facility. b D.
traces the path of a product through the production process. b E.
All of the above. 4.Machine shops, printers, bakeries, education,
and furniture-making are examples of: b A. projects. b B. batch
production. b C. mass production. b D. continuous production.
Slide 119
The focus of operations today is not on functions, but
_____
Slide 120
Which of the following refers to dismantling a competitors
product? b Dismantling a competitors product in order to improve
ones own product Cluster chartingCluster charting
BenchmarkingBenchmarking Reverse engineeringReverse engineering
Concurrent designConcurrent design
Slide 121
BPR VS PROCESS IMPROVEMENT b IMPROVEMENTBUS PROCESS REENG b
Level of change IncrementalRadical b Starting pointExisting process
Clean slate b Frequency of changeContinuousOne-time b Time
requiredshort long b Participationbottom-up top-down b Typical
scopeNarrow Broad b RiskModerate High b Primary enablerStatistical
control Information technology b Type of changecultural
cultural/structural
Slide 122
Disadvantages of handoffs b allow for inventory buildup between
workers, stations b add delays--transit times, wait times b require
more people b make work too simple and boring b require
supervision
Slide 123
What are byproducts of shortened cycle times? b Faster to
market b Larger market share as a result b More responsive to the
customer b More flexible b In some cases even lower cost
Slide 124
Ch 6 - 15 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Process Plans b Blueprints b Bill of material b Operations sheet b
Assembly diagram b Assembly chart / product structure diagram
structure diagram b Process flow chart b Routing sheet
Slide 125
Ch 6 - 16 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
What is this? No.Part No.Part name 151292Outlet end 251284Handle
352043Switch 451576Electric cord 551265Rear housing 651268Motor
mounting plate BILL OF MATERIAL
Slide 126
Ch 6 - 17 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
What is this? Upholstery tool Crevice tool Hand-vac Dusting tool
Package Packaged Hand-vac Forward housing assembly Screw & lock
washer assembly Rear housing assembly Product Structure Tree
Slide 127
Ch 6 - 18 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
What is this? Part nameTable leg Part no.2410 UsageTable Assembly
No.437 Oper No.DescriptionDept.MachineTimeTools 10Saw to rough
length041 20Plane to size043 30Saw to finished length041 40Measure
dimensions051 50Sand052 Operations sheet
Slide 128
Ch 6 - 20 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Symbols for what kind of chart? Operations Inspection
Transportation Delay Storage D Process Flowchart